Deutsche Telekom sets price talk on upsized $5.6 billion T-Mobile notes offering

By Paul A. Harris

Portland, Ore., Oct. 8 - Deutsche Telekom AG upsized its remarketing offer of T-Mobile USA, Inc. notes (expected ratings Ba3/BB) to $5.6 billion from $3.1 billion and added two tranches of notes to the three it launched Tuesday morning, according to market sources.

Later in the day price talk surfaced on all five tranches.

A $1.25 billion tranche of 6.464% senior notes due April 28, 2019 is talked to price in the 103 area, with a 5.5% yield to worst and a 5.82% yield to maturity. The 6.464% notes become callable on April 28, 2015 at 103.232.

A $1.25 billion tranche of 6.633% senior notes due April 28, 2021 is talked to price at par and yield 6 5/8%. The 6.633% notes become callable on April 28, 2017 at 103.317.

A $600 million tranche of 6.836% senior notes due April 28, 2023 is talked to price at 98 and yield 7 1/8%. The 6.836% notes become callable on April 28, 2018 at 103.418.

In additional to those three tranches that were announced Tuesday morning, Deutsche Telekom announced later in the day that it was upsizing the deal by $2.5 billion with the addition of two more tranches of notes.

These include a $1.25 billion tranche of 6.542% senior notes due April 28, 2020, which are talked to price at 101 to yield 6¼%, and a $1.25 billion tranche of 6.731% senior notes due April 28, 2022, which are talked to price in the 99 area to yield 6 7/8%.

All of the notes were issued to Deutsche Telekom by T-Mobile as part of the merger between T-Mobile and MetroPCS Communications Inc., according to a market source.

A prospectus has been filed with the Securities and Exchange Commission.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are managing the sale.

The proceeds will go to Deutsche Telekom, a telecommunications company based in Bonn, Germany.

Dallas-based T-Mobile will not receive any of the proceeds.

The final terms were expected prior to the Tuesday close; however, no terms were available at press time, according to a market source.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.